Asahi Kasei has invested in NFW, a US-based startup that produces non-petroleum-based leather alternatives for car interiors, according to an announcement released 24 October.
The company made the investment as part of its medium-term growth strategy and in close cooperation with its subsidiary Sage Automotive Interiors, Inc., a global provider of functional materials for the automotive interior. It is the company’s first project within its ‘Care for Earth’ investment framework announced in April 2023, in which the company allocated up to $100 million for investments worldwide in early-stage startups that aim to solve issues in environmental fields such as hydrogen, energy storage, carbon management, and bio-based chemicals over the 5-year period up to fiscal 2027.
Based in Peoria, Illinois, NFW was founded in 2015 and has developed the only platform capable of producing precision-engineered leather, foam, and textile alternatives to replace animal and petrochemical-based materials. This new material, called Mirum, has been certified by the United States Department of Agriculture as having 100% biobased content and is made from natural rubber, natural fibers, plant oils, natural pigments, and minerals. Its durablility and quality means it can replace traditional animal-based or synthetic leather products without the use of any polyurethane or other coatings.
Sage was acquired by Asahi Kasei in 2018 and has since been strengthening its business activities in Europe and China through mergers and acquisitions, while expanding its lineup of growth-potential materials such as suede and synthetic leather. As one of the leading global suppliers in the car seat fabric market, Sage has a strong presence among automakers and suppliers.
According to Dirk Pieper, chairman of the Sage Board of Directors and lead executive for the development and growth of Asahi Kasei’s overall automotive product offering, the cooperation with NFW will enable Asahi Kasei and Sage to assist global automakers in reducing the environmental burden of their cars. “By jointly developing and manufacturing a non-petroleum-based and fully circular leather alternative, the Asahi Kasei Group takes a leading position in revolutionizing the market for car interior materials,” he said.
As described in its medium-term management plan in April 2022, the car interior material business is one of Asahi Kasei’s “10 Growth Gears” (GG10), businesses that are to drive future growth, targeting more than 70% of operating income around 2030.